Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1887-06-16
THE u. s. TREASURY.
Secretary Fairchild Gives His Views
on the Accumulation of the
Surplus.
The Public Debt, Less Cash in the Urea
sury June 1, Down to $780,
100000.

a.
sures for relief from the accumulation
of the surelus in the United States Treas
ury, Secretary Fairchild says.
II have authority to anticipate interest
or to go into open market and buy. In
the former expediency could anticipate
the interest for one year on S25O,GOO. 900
of 1915 at AZ per cent, and s737, 500.
600 of 1878 at per cent. The appre-
gate would be about $4O,OOO,Ooo. which
would give that amount of relief until
Congress could meet. The authority to
purchase bonds In the open market is
subject to manipulations of spectators.
If they should run the premium to an
exceptional rate, there would be no pro-
propriety in resorting to this means of
relief. These bonds are now at a high
rate; in fact, maximum rate"
"What would be the difficulty with the
first plan?"
"None at all, with the cooperation cf
the holders of tho securities, provided
they would accept the payment of interest
in advance. The Secretary of the Treas
ury has no power to compel them to take
the interest in advance of its being due.
If they accept there need be no concern
about che surplus for the next five or six
months, if at all before Congress meets.
If they do not it can not now be said
what it may be necessary to do"
"What do you think of an extra ses-
sion?"
''I only mention what can be done to
relieve the country of any disturbances
on account of too great Surplus of the
current circulation of the country in the
Treasury. There might be other consider
L.
the point of an extra session. 1 am only
saying that there need be no apprehen-
sion of disturbance in the monetary af-
fairs of the PEG lie if they cooperate in
applying the means or relief which the
statutes place in the hands of the Secre-
tary of the Treasury. What other reasons
might exist can not say. / speak for
my own department only"
Secretary Fairchild said that repeal of
the tobacco tax would not bring the need
ed relief, and that the question of tax
on whisky was a very delicate matter. If
anything should be done in the way of
reduction, it would have to be do1e by
gradual approaches. In regard to the
customs said:
"The subject of tariff revision has been
agitated by both parties, and something
may be expected in that line, but what
direction it will take remains to be seen.
There is no disposition to embarrass in
dustry or depreciate labor, but with i'm
provements in machinery and skill among
our mechanics, there are articles which
can be produced at home better and
cheaper than abroad, and has no reference
to the tariff. The tariff is not perfect, by
any means. There are conflicting pro-
visions as to rates and administrative
regulations which need regulation. What
ever shall be done, it will be carefully
considered in connection with the views
of competent authorities on the abstract
questions involved and the opinions of
practical men. There must be points
upon which all can gree, and that is the
measure we want"
"Would it be feasible to formulate
distinctively Administration measure?"
''I can only speak for myself on that
subject. It seems necessary to outline
measure upon which there can be har
mony of action between the Government
ana the majority of the House, where
such questions originate. The subject
will be carefully canvassed when the time
comes. But there must be harmony of
action, no matter what the plan be-"
''The question cannot be lodged any
longer?"
"That is very certain. The surplus
revenues for the next fiscal year, from
pres emit indications, will not be less than
800, OOO,O 900. After the 1st of July there
will be no way of getting rid of this &C
emulation. The anticipation of interest
would still leave surplus of $6O,OO0,OO0
and to go into the market and buy bonds
may have objections. Therefore, some
thing must be done by Congress at its
coming session. It must be done wisely,
too, and with reference to some defined
policy for the benefit of the whole people.
The decrease of the debt for eleven
months of the last fiscal year was $4,000
600. The debt, less cash in the Treasury,
June 1, was down to $1,300, 100000, the
Understanding portion of which is but
S1.1OO,OOO,OOO. The reduction of the
debt by redemption of outstanding
securities has come to the end of its tether.
Now we must seek other means of rellev-
ing the Treasury of it's overburdenlng
resources. That will be the issue of the
next year, and will doubtless be an i'm
portant issue before the people within the
next eighteen months. My sole-concern
is to preserve the equilibrium of the ma
TONS finances SO that business and indus
trial interests of the country shall not be
disturbed until measures of relief are
adopted"